Can I Really Make Money in Real Estate With No Money?

Absolutely!  There are several ways to make money with absolutely none of your own cash. 

I will highlight 3 methods I have personal experience with.

1. Borrow 100% of the purchase price and finance the renovations too!  I have done this several times with a first and second mortgage on a property and then I put all the materials and some of the labor (like carpet installation) on my Home Depot or Lowe's credit cards with 12 months, no interest, no payments!  If you find a buyer quickly or move tenants in fast, you can actually complete the whole process with NO MONEY OUT OF YOUR POCKET!  This is also a great way to purchase your own first residence.  Often, renters have very little money for a down-payment but they are tired of handing over thousands of dollars a year to their landlord.  This can be the way out of the rental rat-race.

2. Assigning Contracts! This is a great way to make money without ever buying, qualifying or spending a dime!  (Actually you might have to spend 30-40 bucks on some markers and cardboard) Assigning contracts is done by first finding a property at a very good discount.  Then, you write a purchase contract with your name "or assigns."  Those simple 2 words are the magic here.  They allow you to assign that contract to someone else - for a fee of course.  You are simply the middle man here and you never have to get a mortgage or have a credit check or obtain a real estate license.  finding the discounted homes and hooking up quickly with people who want to buy these contracts is a skill that anyone with half a brain can master.  Large franchise companies like HomeVestors have been doing this for years!  They use large advertising campaigns including billboards, radio and TV spots to attract motivated sellers.  They take calls from hundreds of would-be sellers each month and make low offers.  When they have signed purchase contracts, they assign them to renovation investors or to personal home buyers.  They make their money buy adding a "finders fee" to the deal which is often ten thousand dollars or more per property!  You can follow their business model on a smaller scale.  With a few well-placed, home-made signs, you can attract motivated sellers.  With newspaper ads or just a few phone calls you can find your contract buyers. The necessary paperwork is all standard stuff!  Trust me, there are many millions of dollars made in this way each year!

3. Lease Options or Rent-to-Own.  I have used this method to buy and sell properties.  This is a very powerful way to control and make money with real estate.  The simple Lease/Option or Rent-to-Own is structured like a regular lease except with an added provision that at the end of a contract period (like 12-36 months) you as the renter can "exercise" an option to buy the home.  If you don't have a down payment and or you have poor credit, this is a great way to get a home!  I will tell you how this method helped me and a young couple in Maui.  I purchased a condo for $94,000 and did some renovation work.  I then offered the condo for "Lease with option to purchase for $155,000" in a local newspaper ad.  I had several potential candidates to pick from and I chose a young couple that had poor credit and very little money due to medical bills.  They couldn't qualify for a mortgage but they were able to get me a minimal deposit and start making the monthly lease payment.  Our contract stated that a few hundred dollars per month would be applied toward the eventual down payment.  After about a year, they had repaired their credit and they were able to qualify for a loan, especially because we had documented the down payment money contributed each month.  At the time they purchased the condo, it was appraised at $185,000!  They were grateful!, I made money too, and everybody came out a winner!

I hope these 3 methods can help you make money in Real Estate!  For the details on these and other powerful investing methods I recomend my workbook "Build Your Empire: Lucky Larson's Guide to Real Estate Investing." on my Products Page.

- LuckyLarson

*

Click HERE to Get your FREE report,  "Foreclosure Investing Profits in 90 Days!"

*